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ABSTRACT
The banking industry has reduced structural barriers of competition in domestic markets by abolishing interest rates ceilings on deposits and lending by financial intermediaries in the world. Iran also has not been exceptional in this case. According to the government's policy, the interest rate is going down by 9%. Earlier it used to be 22% presently these are: 15%. The introduction of technology-based solutions like CRM has differentiated companies from their customers' point of view.
CRM is a strategy where banks to build and manage long-term relationships with their customers. Researchers have shown that CRM implementation can provide better customer service, as well as improvement and management of customer expectations and loyalty (Cho et al., 2001; Reich held, 1996; Reichheld & Sassari, 1990; Romano, 2001; Winer, 2001). In this paper we explained the CRM philosophy and it's role in banking system, and have proposed a model of E-CRM for Iran's banking sector by taking into consideration their competitive environment.
KEY WORDS: CRM, E-BANKING, SERVICE QUALITY, INTERNET BANKING.
INTRODUCTION
The 80s and 90s were marked by an unprecedented development in information and communication technologies. This movement was motivated, in particular, by the need of companies to remain competitive in markets characterized by an increase in customer numbers and in the supply of services (Venkatraman, 1994). The introduction of technology-based solutions therefore came about as a way of differentiating companies from their customers' point of view. This evolution contributed towards a change in many companies' strategies and, in particular, the relations they establish with customers (Ricard et al, 2001).
Several industry groups have estimated that billions of dollars are being spent on CRM annually. Gartner research suggests that there was a reduction in CRM spending between 1999 and 2003 (Rigby & Ledingham, 2004), but most estimate an increase in CRM spending. Current spending on CRM-related projects is estimated around $10 to $15 billion and experts predict future growth in CRM spending to reach $75 billion and beyond over the next several years (Chatham, 2002; Tiazkun, 1999; Winer, 2001).
In this movement, banking industry has reduced structural barriers of competition in domestic markets by abolishing interest rates ceilings on deposits and lending by financial intermediaries in the world. Iran also has not been exception. According the...